ENTSOG Gas Regional Investment Plan South 2017 - Main Report

4.3 LNG imports in the South Region

In its liquid form, natural gas can be easily transported over large distances and re-exported towards the most profitable markets. It therefore traditionally serves as a connector between world gas markets and is highly sensitive to variations in global demand and prices. Over the past five years, the global LNG market has been profoundly affected by the aftermath of the Fukushima nuclear catastrophe. Under the combined effect of high demand for gas in Asia and the shutdown of Japanese and South Korean nuclear power plants, a large portion of LNG shipments were redirected to Asia, which represented 75% of world LNG imports in 2014. As a consequence, LNG deliveries to Europe were halved (see figure 4.6). In 2015, worldwide LNG trade amounted to 245 million tons, of which 13% was consumed by the European Union, 44% going to the South Region. With LNG demand in Asia stabilising due to a combination of factor such as slow economic growth, energy efficiency, mild weather conditions and growing fuel substitution, LNG has started making a come-back in the EU, a trend that should continue in the coming years considering the new LNG liquefaction capacities going into production.

25 10 6 t LNG

35 10 6 t LNG

30

20

25

15

20

15

10

10

5

5

0

0

2010

2011

2012

2013

2014

2015

Spain

France

Portugal

Spain

France

Portugal

2010 2013

2011 2014

2012 2015

Figure 4.6: Imports in South Region, 2010 – 2015, 10 6 t LNG (Source: GIIGNL 2010 – 2016 reports)

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Gas Regional Investment Plan of the South Region 2017